Scottish whiskey distillery on its way to Inner Mongolia

Whiskey is gaining ground in China.

Here, a whiskey bar in Hong Kong (illustrative image).

AFP - ED JONES

Text by: Agnieszka Kumor

3 min

The Chinese group Mengtai, coal and energy specialist, in charge of the project, announced the construction of a Scotch whiskey distillery in Ordos, Inner Mongolia.

The factory will be fully equipped by the Scots.

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Three million pounds sterling.

This is the amount that the Chinese group Mengtai, a specialist in coal, electricity, aluminum and district heating, was willing to pay to build a Scotch whiskey distillery at home in China.

The Scottish group Valentine International, a specialist in commercial projects established in China, will lead its design and construction.

The factory in the town of Ordos, where the Chinese group's headquarters are also located, will be fully equipped by this company and could start production as early as next year.

The future Chinese “single malt”?

The founder and boss of the Mengtai company, AO Fengting, aims not only to produce the best whiskey in China, but a whiskey recognized worldwide for its quality.

While baijiu, a cereal-based brandy, remains the preferred alcohol of the Chinese, amber nectar is starting to gain ground. Several international groups have decided to settle in the country. This is the case of the French group Pernod Ricard, one of the world leaders in the distribution of wines and spirits, which set up in Sichuan with the aim of developing this industry on the Asian continent.

Not sure that the still independent distilleries in Scotland will welcome this transfer of traditional know-how. But perhaps soon they will not have a choice in the face of competition from the giants of the sector. Since Brexit, producers' difficulties have been piling up, in particular because of

new

administrative

rules

with the European Union. The collapse of the pound has certainly benefited exports, knowing that 90% of whiskey sales are made outside the United Kingdom. But at the same time, the price of barrels essential for aging whiskey has risen.

Fortunately, the Scottish national drink was able to benefit from the suspension of taxes with the United States in the Airbus / Boeing dispute.

In June 2021, London and Washington struck a

deal

that suspends punitive 25% tariffs for five years.

In 2020, Scotch whiskey exports were £ 3.8 billion, down 23% from 2019, according to figures released by the Scotch Whiskey Association.

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